That $1.20 would be multiplied by the number of days in the collection cycle to determine the base amount per machine for the collection cycle.   

The market has rallied 40% since its last 'fair valuation' in 2013 and so appreciation has been solid.Seems a good market to invest if price rally continues for several more years, though if COVID/subsequent effects lead to peak of cycle, may potentially see some correction.

And of course went full cycle on an abundance of deals.

@Bao Do I see most CA based investors looking out of state at this point in the market cycle.

@Chris Gerard I feel we are going through the same cycle with STRs as happens with all newer business strategies.

Multiply that over multiple properties and multiple years and that is the power of tax deferred growth.I would say the biggest snare is buying wrong with insufficient cash flow or over leveraging so that in down turns with rent rate deterioration you have to sell instead of being able to ride out the cycle.  

Typically each home cycles through several auctions before the reserve is dropped to realistic level.

Even the top 10% of tenants, voucher holders or not, will destroy a house through “normal use” during an ideal 2-3 lease renewal cycles and there isn’t a deposit large enough to cover the turnover costs.

Inherently more volatile and behave more like a motelRequire a lot higher degree of management than MH parks, especially if the park has daily trafficYou can fill up an RV park way faster than a MH park (a MH park can also benefit from RVs if there are vacant spaces)Depending on the location, residents stay for a night, a week, month, or a seasonCapable of producing higher cash flow than a MH park, but with volatility due to seasons and market cycles.

I am thinking about diversifying the investment into both cash-flow and appreciation so that the portfolio is more solid regardless the economic cycles.